KUCHING: Since the change of federal government, much of the focus went to the country’s debt and liabilities, said Chairman of SHEDA (Sarawak Housing and Real Estate Developers’ Association) Kuching Branch Sim Kiang Chiok.
On the 2019 Budget, he explained that as a developer in Sarawak, the Federal budget will affect the way people do business although land, utilities and building materials are locally-sourced.
“In the run-up to the budget, the Prime Minister (Tun Dr Mahathir Mohamad) has announced that new taxes will be introduced on sales of assets and land, leasing of government assets and buildings.
“Any increase in the present tax such as corporate tax, stamp duties, Real Property Gain Tax, foreign buyer stamp duties will further increase the compliance cost and reduce demand of properties.
“New taxes speculated such as Inheritance Tax, Capital Gain Tax will also reduce competitiveness of our country for foreign investors and thus indirectly affect the demand for properties in our country,” he said.
Sim also pointed out that the sale of assets and lands will increase the supply of available lands for development to ease the pressure from demands.
“Government has to be careful where these lands and assets are sold so not to affect the area with an oversupply of properties while leasing of government buildings will also increase space for rental and its yield.
“It has created much anxiety among the properties market that foreign investments are reducing, demand for Ringgit is decreasing, weakening its exchange rates while creating imported inflation.
“We wish for reduction in cost to increase the ease of doing business in Malaysia,” he said.
He reckoned that the federal government should keep their promise to do more for less through the reduction in corruption.
The present challenge for developers in Malaysia, Sim stated, was the ease of getting finance for purchase of houses.
Bank Negara has set a policy of lending based on proven income which has increased the number of unsold properties, reduced new launches although the demand for houses has been on the rise especially for first-time home buyers.
